Measuring the Effect of Policy on the Demand for Menthol Cigarettes: Evidence from Household-Level Purchase Data

Esteban Petruzzello

Eastern Economic Journal, 2019, vol. 45, issue 3, No 5, 422-445

Abstract: Abstract I use detailed household-level data to investigate the potential impact of a ban on menthol cigarettes on smoking when compared to intervention policies such as taxes and public smoking restrictions. The results show that menthols are less addictive than non-menthols and that demand for menthol cigarettes is less price sensitive. Public smoking restrictions are unsuccessful in reducing menthol smoking, though they do reduce non-menthol consumption. Additionally, higher prices do not increase the likelihood of quitting for menthol smokers. These findings indicate that current policies are ineffective in curbing menthol smoking and strengthen the case for a complete ban.

Keywords: Menthol cigarette; Addiction; Smoking cessation; Public smoking restriction; Cigarette tax (search for similar items in EconPapers)
JEL-codes: D12 I18 L66 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1057/s41302-019-00139-2

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